Islamabad, Oct 14: Chinese Firms Face Setbacks in Pakistan Amid Security and FX Woes
According to a new study conducted by the China Chamber of Commerce in Pakistan (CCCPK) and released on Sunday, Chinese businesses perceive a lack of security in Pakistan.
The Business Climate Index score, as reported by the poll, was 49.63, which is slightly below than the 50-optimism threshold. The main worries raised by the corporations were unpredictable policies, foreign exchange controls, security threats, and the weak rupee.
The main problem is security risks. According to the poll, under the China-Pakistan Economic Corridor (CPEC), 83.4 percent of the responding enterprises indicated a worsening condition, subpar company operations, and low investor confidence.
Chinese Firms Face Setbacks Sixty-four percent of enterprises reported that delays in payments are caused by foreign exchange limitations, while fifty-three percent blamed inconsistent rules. When comparing their assets in US dollars, slightly more than half, or 56.3%, said that the fall of the rupee has decreased their holdings.
In spite of these difficulties, 33.3 percent of businesses reported growth, while 52.1 percent of businesses kept consistent business volumes.
Seventy percent of respondents expressed optimism for Pakistan’s economic future, and forty-seven percent predicted that order volumes will remain stable over the next three months. According to the survey, 37 percent of businesses may increase production, but 58.3 percent of them intend to keep their current personnel.
In the next three months, 39 percent of the enterprises questioned anticipate an increase in the economy, and 43.8% anticipate stability.
